Intro to Leasing Assets
Suppose you want to run a successful and consistently profitable construction company. In that case, you have to have the right equipment at your disposal - if you don’t, it's unlikely that your business will be successful for a sustained period. When you know you have the correct equipment, you can try to get business, bid for projects and put yourself out there in the construction industry. However, the cost of business assets, such as vehicles, cement mixers and cranes, can feel like surprising hidden costs.
You might find your business struggling to find the capital to purchase the equipment above but don’t despair. Buying outright isn't the only option; it's possibly the least efficient option. Leasing your business assets could be a more lucrative and efficient option for your business.
Leasing assets can be a great option for your business.
A normal life cycle for any technology is around 2-3 years, which means if you buy your construction equipment outright, it's obsolete after said amount of years. Buying outright prevents you from upgrading whatsoever because your current assets had depreciated so much that you've ended up with less money than when you started.
Leasing your business assets, such as construction equipment, transforms your ability to access the best gear for your company as finance firms only ever offer the latest models and, at the end of the agreement, will give you the option to continue on the same contract but upgrade the model you originally leased - no real change in price, but you get the newest model. Having the best will improve so many different facets of your business.
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Leasing assets can allow your business to upgrade more frequently and stay up-to-date.
Bank loans may not be the best route to go down when you’re looking to purchase new business assets… especially if you have a bad/no credit rating. However, bad credit isn't the obstacle it once was; thanks to leasing, bad credit can be overcome.
Equipment leasing companies will usually approve applications based on deposits and proof that payments will be made in the future (bank statements and accounts - that sort of thing). Credit checks occur when you try to go down the old-fashioned route of going to a bank - they are, as a rule, a lot more stringent.
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Leasing assets gives you more freedom in terms of your credit.
The affordability of leasing construction-based business assets may be a better option for you. Despite regular payments versus one upfront fee, you become responsible for maintenance, upkeep, installation, and repairs when you own equipment. Leasing means that all these nuisance costs are tied to your monthly payments, so you don't have to worry about shelling out if something goes wrong with your construction equipment.
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Leasing assets can often be the most affordable option for your business.
Sometimes you need one specific piece of equipment for a particular part of a job, but you don't want to pay for the equipment outright. Leasing a specific amount of equipment for a period that suits you is a better option as you avoid the long-term commitment of buying outright. By leasing the individual business asset, you can use the equipment for whatever purpose, return it to the rental company upon completion of the deal, and get your deposit back if the items are returned in good condition.
The bottom line is that there are so many options for leasing business assets that there's bound to be one for you. Your business's long and short-term success depends on having the best equipment and having it for the appropriate amount of time. Leasing business assets can help grow your company and keep vital funds within your company, so why not consider it the next time you’re after a piece of equipment?
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There are so many options for leasing business assets, find the right one for you.
Apply to lease your business assets through Love Finance here, or contact us for more information.
